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Someone elses debt

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A few years ago, when I was still married my husband and I took out a loan for around £6k for my parents as they were blacklisted and could not get a loan themselves. They agreed to pay me by standing order each month a set amount. 2 years ago me and my husband split and this was the only debt remaining. It was then though that I discovered that my parents had stopped paying the money into my account as they 'couldn't afford it' and had fallen on hard times themselves. I know legally this is my debt and cannot prove that I have not received a penny of the initial loan but find it frustrating that from this point, I then had to pay the monthly payments (and still am) but hadn't seen a penny but as my parents were struggling I thought I would just try to tide them over until they got themselves straight. I then went on to borrow another few thousand on top of the loan which didn't really make much difference to the monthly payment (I extended the terms) as had ran up a little debt myself after the split and was struggling to bring up 2 children on my own. My parents have since taken the hump and no l onger speak to me! My mum is now paying me back at around £15 per week when she can afford it but on top of the original loan (which I am still paying more than £15 per week for with interest) she also owes me around £2k in catalogue fees as I used to be an agent for Littlewoods. I am now on a debt management plan with CCCS still struggling as a single mum and working full time, doing what I can. I want to know is there any way I can recover the money my parents owe me or pass any of this debt back to them? :confused:

Comments

  • Oeillade
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    Hi Wildthing

    Know how you are feeling! I have the secured loan we took out to pay off my ex-partner's credit cards and overdrafts! He's refusing to pay, well he isn't going to get evicted is he!

    Good luck
  • sdooley
    sdooley Posts: 918 Forumite
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    Yes you can sue your parents. It would help if you have evidence in writing that they agreed this was a loan, but the bank transfer from you to them followed by their payments back to you would be evidence.

    www.moneyclaim.gov.uk is the government website allowing you to make small claims (I assume there is now less than £5,000 outstanding).

    You can't transfer the liability to your parents. You also may find they agree with the court to pay you back at some small amount each month.
  • newlywed
    newlywed Posts: 8,255 Forumite
    Name Dropper First Post First Anniversary
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    If you are with CCCS on a DMP - is this loan included in the DMP - it should be.

    If you are struggling, you can ask CCCS for a DMP review to reduce your DMP payments if other costs have increased.
    working on clearing the clutterDo I want the stuff or the space?
  • wannabespendthrift
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    Hey Wildthing

    Situ as I see it (and you prob. already know) is that the debts in your name and you'll have to pay it or face the consequences. That's the loan and the catalogue debt.

    You can then try and sue your parents for the money separately in Court claiming that you took the loan/catalogue debt out for them and they were always to pay you back. if a Court believes you they will grant you a judgment for x amount and then you'll need to see about your parents paying this off to you. The loan people won't care less about whether your parents pay you, they want your money regardless.

    I bet you're pee'd off and I admit I'd be annoyed myself but have you considered that you may damage your relationship with your parents irrepairabley for the sum of about £8K - not a whole lot really is it particularly if you're on a DMP and you're Creditors will just have to lump it and get it when and if you have it?

    I don't know the background story but if you have to condense it down to money how much do you think your parents have paid out to you since you came into the world? More than £8K maybe? Is there any possibility that you can just mentally write off this money and try and build up a relationship again? These forums are full of people who have lost parents and are struggling emotionally - really you have so much more than money so long as you have your parents and there is nothing to say they'll be around forever for you to afford to fall out with them over money xxx Just a thought maybe xx
  • Ellie279
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    Well... Im (indirectly) paying off my fiances ex girlfriends debts!! He bought her a car and did lots of work to her house - £20000 in total. He has remortgaged his flat which we rent out and we live in my house. This means the rent does not cover the mortgage on the flat so we have to top it up everymonth, He says its not worth going after her for money, he cant prove anything!
  • sdooley
    sdooley Posts: 918 Forumite
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    Ellie, he can prove a lot, there will be plenty of evidence by way of bank records. The car might be treated as a gift (if she not he can show evidence that the money to buy it was a gift) but there's lots of cases which suggest that a financial contribution to a house will be taken as giving the person making the contribution an interest in the equity.
  • brightonman123
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    do your parents have any property that could be sold / have a charge put on it?

    i take it a reconciliation is past hope..
    Long time away from MSE, been dealing real life stuff..
    Sometimes seen lurking on the compers forum :-)
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